ABC-XYZ
Extracted text: On January 1, 2021, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of P30 per share and par value of P20 per share. The financial statements of ABC Co. and XYZ, Inc. immediately after the acquisition are shown below: Jan. 1, 2021 XYZ, Inc. 10,000 ABC Co. Cash 20,000 60,000 Accounts receivable 24,000 80,000 Inventory Investment in subsidiary Equipment Accumulated depreciation 46,000 150,000 400,000 (40,000) 100,000 (20,000) 160,000 Total assets 670,000 Accounts payable 40,000 12,000 Bonds payable 60,000 Share capital 340,000 100,000 Share premium Retained earnings Total liabilities and equity 130,000 100,000 48,000 670,000 160,000 On January 1, 2021, the fair value of the assets and liabilities of XYZ, Inc. were determined by appraisal, as follows: Carrying Fair Fair value XYZ, Inc. amounts values increment Cash 10,000 10,000 Accounts receivable 24,000 24,000 Inventory Equipment Accumulated depreciation Accounts payable 46,000 62,000 16,000 100,000 120,000 20,000 (20,000) (12,000) (24,000) (12,000) (4,000) Net assets 148,000 180,000 32,000 The equipment has a remaining useful life as of 4 years from January 1, 2021. ABC Co. elects to measure non-controlling interest as its proportionate share in XYZ's net identifiable assets. Compute for the consolidated asset.